Investor Presentation November 2018 F.N.B. Corporation

Transcription

1 Investor Presentation November 2018 F.N.B. Corporation

2 Table of Contents Page Cautionary Statement 3 Key Investment Considerations 4 About FNB 5 An Infrastructure Built for Long Term Sustainable 6 Growth 2018 Strategic Objectives 7 Becoming a Data Driven Bank 8 Click to Bricks 9 Select Loan Portfolio 10 Key Fee Based Businesses 11 Capital Markets & Specialty Finance 12 Full Year Objectives 13 Page 3Q18 Financial Highlights 15 Asset Quality 16 Balance Sheet Highlights 17 Balance Sheet Yields/Rates 18 Revenue Highlights 19 Non Interest Income 20 Non Interest Expense 21 Historical Performance Peer Comparison Supplemental Information Operating Results 14 2

3 Cautionary Statement Regarding Forward Looking Information and Non GAAP Financial Information This document contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which contain F.N.B. Corporation s (F.N.B.) expectations or predictions of future financial or business performance or conditions. Forward looking statements are typically identified by words such as believe, plan, expect, anticipate, intend, outlook, estimate, forecast, will, should, project, goal, and other similar words and expressions. These forward looking statements involve certain risks and uncertainties. In addition to factors previously disclosed in F.N.B. s reports filed with the SEC, the following factors among others, could cause actual results to differ materially from forward looking statements or historical performance: changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates and capital markets; inflation; potential difficulties encountered in expanding into a new and remote geographic market; customer borrowing, repayment, investment and deposit practices; customer disintermediation; the introduction, withdrawal, success and timing of business and technology initiatives; competitive conditions; the inability to realize cost savings or revenues or to implement integration plans and other consequences associated with acquisitions and divestitures; economic conditions; interruption in or breach of security of our information systems; integrity and functioning of products, information systems and services provided by third party external vendors; changes in tax rules and regulations or interpretations including, but not limited to the recently enacted Tax Cuts and Jobs Act; changes in accounting policies, standards and interpretations; liquidity risk; changes in asset valuations; and the impact, extent and timing of technological changes, capital management activities, and other actions of the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation and legislative and regulatory actions and reforms. F.N.B. does not undertake any obligation to revise these forward looking statements or to reflect events or circumstances after the date of this document. This presentation contains snapshot information about F.N.B. and is not intended as a full business or financial review and should be viewed in the context of all the information made available by F.N.B. in our SEC filings. To supplement our consolidated financial statements presented in accordance with Generally Accepted Accounting Principles (GAAP), F.N.B. provides additional measures of operating results, net income and earnings per share adjusted to exclude certain costs, expenses, and gains and losses. F.N.B. believes that these non GAAP financial measures are appropriate to enhance understanding of our past performance and facilitate comparisons with the performance of F.N.B. s peers. In the event of such a disclosure or release, the Securities and Exchange Commission s Regulation G requires: (i) the presentation of the most directly comparable financial measure calculated and presented in accordance with GAAP and (ii) a reconciliation of the differences between the non GAAP financial measure presented and the most directly comparable financial measure calculated and presented in accordance with GAAP. The Appendix to this presentation contains a reconciliation of the non GAAP financial measures used by F.N.B. to the most directly comparable GAAP financial measures. While F.N.B. believes that these non GAAP financial measures are useful in evaluating results, the information should be considered supplemental in nature and not as a substitute for or superior to the relevant financial information prepared in accordance with GAAP. The non GAAP financial measures used by F.N.B. may differ from the non GAAP financial measures other financial institutions use to measure their results of operations. This information should be reviewed in conjunction with F.N.B. s financial results disclosed on October 23, 2018, as well as F.N.B. s corresponding Form 10 Q filing and our other periodic filings with the SEC. Actual results may differ materially from those expressed or implied as a result of these risks and uncertainties, including, but not limited to, the risk factors and other uncertainties described in F.N.B.'s Annual Report on Form 10 K for the year ended December 31, 2017, our subsequent quarterly 2018 Form 10 Q filings (including the risk factors and risk management discussions) and F.N.B.'s other subsequent filings with the SEC, which are available on our corporate website at online.com/about us/investorrelations shareholder services by clicking on the hyperlink Reports and Filings. We have included our web address as an inactive textual reference only. Information on our website is not part of this earnings presentation. 3

4 Key Investment Considerations o FNB s business model is designed to deliver long term shareholder value o Past infrastructure investments have positioned FNB well for sustainable growth o We intend to achieve consistent growth while adhering to our risk profile o We are committed to continued efficiency improvement while investing for the future o We are focused on delivering earnings growth and achieving our financial objectives 4

5 About FNB Corporation High Quality, Growing Regional Financial Institution o Headquarters: Pittsburgh, PA o Market capitalization: $3.8 billion 1 o Banking locations: Approximately o Total Assets: $33 Billion 1 Business Model o Regional bank focused on serving consumer and wholesale banking clients Adhere to a low risk profile Increase market share through growth opportunities Demonstrate disciplined expense control and improve efficiency Deliver long term value Well Positioned for Sustained Growth o Attractive Mid Atlantic footprint: Banking locations spanning six states o Established presence with top regional bank market share in metropolitan markets 2 #3 in Pittsburgh #10 in Raleigh #8 in Baltimore #8 in Charlotte #13 in Cleveland #6 in Piedmont Triad 3 Consistent Operating Results o High quality earnings o Solid profitability performance o Consistently strong organic loan and deposit growth results (1) As of September 30, (2) S&P Global Market Intelligence, MSA retail market share (excludes custodian banks), pro forma for pending acquisitions as of June 30, (3) Greensboro High Point MSA and Winston Salem MSA. 5

6 An Infrastructure Built for Long Term Sustainable Growth PEOPLE Talent Management Strengthened team through key hires; Continuous team development Chief Technology & Chief Marketing Officer filled, launched Project Management Office Chief Wholesale Banking and Chief Consumer Banking Officer filled Chief Information Security Officer filled Retention of support personnel, regional leadership in Carolinas hired/retained Hired EVP of Capital Markets and Specialty Finance Geographic Segmentation Regional Model Announced Pittsburgh as HQ Improved market share in Central PA, Expanded HQ, Operations and Technology functions, entrance into Carolinas, creation of 4 new Carolina regions Commercial banking hires in Washington D.C.; retail & commercial expansion in Charleston, SC PROCESS Sales Management Proprietary sales management system developed & implemented: Balanced scorecards aligned with shareholder value proposition Consumer Banking scorecards, Consumer Banking refinement/ daily monitoring Continued enhancements to Commercial Banking sales mgt., expansion of additional lines of business: Private Banking, Insurance, Wealth Management Enhancement of CRM Data Analytics SBA Lending and Builder Finance Identification of process improvements to drive efficiency PRODUCT Product Development Deepened product set and niche areas Mobile Banking Enhancements New website launched, ApplePay TM, International Banking Intelligent Teller Machines, digital in branch kiosks and solutions centers, new commercial banking app, CardGuard debit card controls, upgrades to online banking & mobile app including Touch ID & FNB Direct, introduction of Zelle SM PRODUCTIVITY Branch Optimization Continuous Evolution of branch network to optimize profitability De Novo expansion Consolidate 1 location BAC branches Consolidate 6 locations FITB branches, Opened innovative banking center in State College, PA Introduction and expansion of Concept Branches Consolidate 9 locations Consolidate 8 locations Consolidate 20 locations 6

7 Strategic Objectives 2018 and Beyond Consumer o Enhance analytics capabilities to better understand customers needs and increase share of wallet o Fully deploy Clicks to Bricks strategy across the footprint o Continue to rationalize branch network to improve efficiency o Enhance private banking to provide a more comprehensive solution to highnet worth clients o Continue build out of mortgage banking in new and attractive markets Commercial o Continue expansion of equipment finance for middle market borrowers o Disciplined expansion into attractive markets via loan production offices (LPOs) o Develop unified customer view to better identify cross selling opportunities o Add local product specialists to support the needs of sophisticated borrowers o Develop specialty verticals such as government contracting and healthcare financing Fee Based o Develop a new SBA loan product offering for smaller businesses o Expand insurance in new markets and leverage data analytics to increase growth in personal lines o Introduce additional mobile and online offerings for wealth management and expand in new markets o Reorganize capital markets and specialized finance businesses FNB is Well Positioned to Deliver Greater Shareholder Value 7

8 Becoming a Data Driven Bank Evolving Our Marketing Data Capabilities Investments in proprietary data science and targeted marketing capabilities Development of proprietary models to identify specific product opportunities based upon client needs Alignment of data analytics and online/web based marketing efforts Front Line Impact Internally generated leads incorporated into targeted marketing campaigns Leads shared with front line to initiate consultative customer conversations based upon client needs Improved customer segmentation used in product and marketing resource deployment Front line staff equipped with better information to increase value of branch visits Data Information Knowledge Sharing Use Feedback Value Improved customer experience 8

9 A Consistent Experience across Channels Clicks to Bricks is the seamless integration of traditional and digital channels to create a consistent, exceptional customer experience whether in the branch, online, or mobile Channel Branch Experience aligned with Digital Experience Learn o Solution Center featuring product boxes and touch screen tablets o Product videos, Help Me Decide comparison tools on tablets and kiosk in branch o Online Product boxes mimic retail experience o Product videos, Help Me Decide comparison tools online Experience Apply Transact o ipads for streamlined deposit opening o Unified product application via solution center o Intelligent Teller Machines o Smart ATMs o Intuitive, easy to navigate website o Enhanced online application o Online banking and bill pay o Mobile banking with remote deposit capture, Touch ID, CardGuard SM, bill pay, Apple Pay TM, Zelle SM,1 Consult o Focus on consultative conversations, not product push o Financial literacy and education o Online financial education tools and resources o Budget tools with notifications included in base offering Mobile Online Clicks to Bricks Branch o o A differentiated mobile experience: FNB offers all of the most frequently used features according to the S&P Global Market Intelligence, as well as several popular features not available on many competing apps S&P also cited Clicks to Bricks as an example of a strategy that brings a digital experience into the branch (1) FNB currently offers Popmoney, a payment solution which is expected to be replaced by Zelle. 9

10 Select Loan Portfolios 4Q17 1Q18 2Q18 3Q18 4Q17 1Q18 2Q18 3Q18 Residential Mortgage 5.51% Indirect Installment 3.47% $2,653 $2,814 $2, % 4.20% Average Balance Yield $2, % % $1, % 3.36% $1, % $1,474 Average Balance Yield $1, % 1 Consumer LOC Commercial 4.99% 5.13% 4.79% 4.84% $4,076 $4,225 $4,291 $4, % 1 $1,776 $1, % $1,720 $1, % 4.67% 2.8% 1 $8, % $8,810 $8,825 $8, % 1 Average Balance Yield CRE C&I Yield Note: $ in millions. Excludes loans held for sale. (1) Linked quarter change from 2Q18 to 3Q18. 10

11 Key Fee Based Businesses $ in millions 4Q17 1Q18 2Q18 3Q18 Insurance $4.5 $5.1 $4.6 $5.0 o o Provides full range of consumer and commercial insurances Focus on cross sell, further development of personal lines Insurance Commissions and Fees $3.7 $4.3 $4.5 $4.5 o Provides solutions to businesses, individuals, endowments, government entities Wealth Management $5.9 $6.4 $6.5 $6.4 o Focus on improvement of technology offerings, attracting emerging affluent Trust and Wealth Services Investment Services 2018 o Increased Carolina contributions during Mortgage Banking $5.6 $5.5 $5.9 $6.0 o o Extensive range of mortgage offerings Focus on new household acquisition and relationship building Mortgage Banking Operations 11

12 Capital Markets and Specialty Finance $ in millions 4Q17 1Q18 2Q18 3Q18 Small Business Administration $0.9 $1.6 $1.6 $0.6 o o Realigned strategy supports FNB LOBs in our core footprint and nearby states Focus on credit quality, documentation process, and mitigating put back risk SBA Operations Commercial Leasing $242 $272 $288 $341 o o Fast growing portfolio with attractive economics Focus on value added cross sell to commercial clients Average Balance Capital Markets $4.9 $5.2 $5.9 $5.1 o Suite of solutions for sophisticated borrowers including interest rate derivatives, international banking services, and loan syndication capabilities o Focus on multi product relationships Capital Markets Income 12

13 Full Year 2018 Financial Objectives Balance Sheet Category Loans Deposits FY 2018 Expectation Mid single digit growth 1 Mid to high single digit growth 1 Net interest income Low to mid single digit growth 2 Provision expense $70 million Income Statement Noninterest income Mid to high single digit growth 2 Noninterest expense Mid single digit growth 2 Effective tax rate Approximately 20% (1) Compared to 4Q17 period end balance. (2) Compared to annualized 4Q17 operating results. 13

14 Operating Results 3Q18 Highlights 14

15 3Q18 Financial Highlights 3Q18 2Q18 3Q17 Reported Results Key Operating Results (non GAAP) 1 Net income available to common stockholders Earnings per diluted common share Book value per common share Operating net income available to common stockholders (millions) Operating earnings per diluted common share Total organic average loan growth 2 Total organic average deposit growth 2 Efficiency Ratio Tangible common equity / tangible assets Tangible book value per common share $98.8 $83.2 $75.7 $0.30 $0.26 $0.23 $13.62 $13.47 $13.39 $94.7 $89.1 $76.6 $0.29 $0.27 $ % 5.5% 5.7% 11.3% 5.7% 0.8% 53.7% 55.6% 53.1% 6.89% 6.79% 6.87% $6.44 $6.26 $6.12 (1) Includes adjustments to reflect operating results, a non GAAP measure, refer to Appendix for non GAAP to GAAP Reconciliation details and to the cautionary statement preamble for rationale for use of non GAAP measures. (2) Annualized linked quarter results. 15

16 Asset Quality 1 $ in thousands 3Q18 2Q18 3Q17 3Q18 Highlights NPLs+OREO/Total average originated loans and leases + OREO Delinquency 0.73% 0.71% 0.91% 0.79% 0.68% 0.91% o Solid overall credit quality, with consistent and steady performance across all portfolios Provision for credit losses 2 Net charge offs (NCOs) 2 $15,975 $15,554 $16,768 o Reported net charge offs included a $7.1 million accounting impact, or 13 bps from the Regency sale, with no $14,668 $18,227 $12,451 associated provision expense NCOs (annualized)/total average loans and leases 2 NCOs (annualized)/total average originated loans and leases 0.27% 0.34% 0.24% o Core net charge offs 14 bps 0.33% 0.36% 0.37% o Core originated net charge offs 16 bps Allowance for credit losses/ Total originated loans and leases Allowance for credit losses/ Total non performing loans and leases Combined coverage ratio with credit marks 1.00% 1.02% 1.12% 183.9% 203.6% 161.7% 1.55% 1.67% 1.93% o Provision for loan losses exceeds net charge offs (1) Metrics shown are originated portfolio metrics unless noted as a total portfolio metric. Originated portfolio or Originated loans excludes loans acquired at fair value and accounted for in accordance with ASC 805, as the risk of credit loss has been considered by virtue of F.N.B. s estimate of fair value. (2) Total portfolio metric. 16

17 Balance Sheet Highlights Average, $ in millions 3Q18 2Q18 3Q17 QoQ Δ YoY Δ 3Q18 Highlights Securities $6,341 $6,214 $5,725 Total Loans $21,775 $21,445 $20, % 10.8% 1.5% 5.4% Commercial Loans $13,545 $13,454 $12, % 4.2% Consumer Loans 1 $8,230 $7,991 $7, % 7.5% Earning Assets $28,211 $27,753 $26, % 5.9% Total Deposits $23,122 $22,484 $21, % 9.1% Transaction Deposits 2 $17,865 $17,672 $17, % 2.8% o Growth in commercial loans was driven by strong performance in the Cleveland and Mid Atlantic regions and continued growth in Equipment Finance and Asset Based Lending o Consumer loan growth of 12% annualized reflects strong origination activity in indirect and residential loans o 14% annualized linked quarter growth in non interest bearing reflects strong growth of business demand deposit accounts o Transaction deposits 2 represent 76.8% of total deposits 3 o Loan to deposit ratio of 92.9% 3 Time Deposits $5,257 $4,812 $3, % 37.9% compared to 96.1% in 2Q (1) Includes Direct Installment, Indirect Installment, Residential Mortgage and Consumer LOC portfolios. (2) Excludes time deposits. (3) Period end as of September 30,

18 Balance Sheet Yields/Rates %, presented on an FTE basis 3Q18 2Q18 1Q18 4Q17 3Q17 Interest bearing deposits with banks Assets Investment securities Loans and leases Total earning assets Interest bearing demand Savings Certificates and other time Liabilities Borrowings Total interest bearing liabilities Cost of interest bearing deposits Cost of deposits Cost of funds Net interest spread Net interest margin (1) See slide 19 for further information related to the fully taxable equivalent adjustment and the impact of acquired loan accounting. 18

19 Revenue Highlights $ in thousands 3Q18 2Q18 3Q17 QoQ Δ YoY Δ 3Q18 Highlights Total interest income $297,815 $294,117 $263, % 13.0% o Record revenue of $310 million reflects continued loan and deposit growth Total interest expense 63,028 54,762 38, % 64.6% and strong non interest income results Net interest income $234,787 $239,355 $225, % 4.2% o Interest expense increase driven by repricing of Non interest income 74,834 64,889 66, % 13.1% interest checking and CD interest rates Total revenue $309,621 $304,244 $291, % 6.3% o 15% linked quarter noninterest income growth reflects continued positive results in fee based units Net interest margin (FTE) % 3.51% 3.44% (15 bps) (8 bps) and $5.1 million gain on sale of Regency in 3Q18 Incremental purchase accounting accretion impact 2 Cash recoveries impact 2 FTE adjustment impact 0.08% 0.02% 0.08% 0.15% 0.04% 0.06% (13 bps) 4 bps (4 bps) o Net interest margin narrowed 15 basis points, directly attributable to higher level of cash 0.06% 0.05% 0.09% 1 bp (3 bps) recoveries in 2Q18 and impact from the sale of Regency Finance which closed 8/31/2018 (1) A non GAAP measure, refer to Appendix for further information. (2) Incremental purchase accounting accretion refers to the difference between total accretion and the estimated coupon interest income on acquired loans, and cash recoveries impact refers to any associated cash recoveries on loans received in excess of the recorded investment. 19

20 Non Interest Income $ in thousands 3Q18 2Q18 3Q17 QoQ Δ YoY Δ 3Q18 Highlights Service charges $31,922 $31,114 $32, % (0.9%) Trust income 6,395 6,469 5,748 (1.2%) 11.2% Insurance commissions and fees Securities commissions and fees Capital markets income Mortgage banking operations Net securities gains (losses) Other 1 5,001 4,491 5,100 5, ,828 4,567 4,526 5,854 5, ,065 5,029 4,038 2,822 5,437 2,777 8, % (0.8%) (12.9%) 0.4% NM 7.6% (0.6%) 11.2% 80.7% 9.7% NM 33.9% o Wealth management 2 continues to benefit from growth in the Carolinas o Capital markets experienced continued strong levels of swap income o Insurance reflects seasonal commission benefit o Mortgage banking Non interest income before $69,699 $68,566 $66, % 5.4% continued to grow due to significant items impacting earnings expansion in Mid Atlantic and Carolina markets Gain on sale of subsidiary 5, NM NM Loss on fixed assets related to branch consolidation 0 (3,677) 0 NM NM Total reported non interest income $74,834 $64,889 $66, % 13.1% (1) Excludes amounts related to significant items impacting earnings (2) Wealth management refers to Trust Income and Securities Commissions and Fees. 20

21 Non Interest Expense $ in thousands 3Q18 2Q18 3Q17 QoQ Δ YoY Δ 3Q18 Highlights Salaries and employee benefits 1 $89,535 $97,752 $82,383 (8.4%) 8.7% Occupancy and equipment 1 27,812 27,723 27, % 1.4% FDIC insurance Amortization of intangibles Other real estate owned 1 Other 1 Non interest expense before significant items impacting earnings 8,821 3,805 1,492 39,264 $170,729 9,167 3,811 1,087 39,660 $179,200 9,183 4,805 1,421 37,136 $162,362 (3.8%) (0.2%) 37.3% (1.0%) (4.7%) (3.9%) (20.8%) Merger related expense 0 0 $1,381 NM NM Branch consolidation costs 0 2,939 0 NM NM 4.9% 5.7% 5.2% o The primary driver in noninterest expense was a decrease in salaries and employee benefits. This was attributable to lower overall personnel expense levels, branch consolidations, and the sale of Regency which closed on 8/31/2018. Also, 2Q18 had an elevated medical claim and a non run rate payroll tax rate adjustment. Discretionary 401(k) contribution NM NM Total reported non interest expense $170,729 $183,013 $163,743 (6.7%) 4.3% (1) Excludes amounts related to significant items impacting earnings. 21

22 Historical Performance 22

23 Total Assets ($ in Billions) Impact of crossing $10 Billion threshold o Durbin amendment and other revenue constraints o Incremental FDIC expense o Required capital actions for Basel III compliance $31.4 o Incremental compliance costs o Lost Fed dividends $32.6 $21.8 $16.1 $17.6 $8.4 $8.7 $9.0 $9.8 $12.0 $ /30/

24 Total Revenue ($ in Millions) $1,099 $1,218 $813 $356 $379 $400 $433 $504 $532 $625 $ YTD (1) Annualized YTD results. 24

25 Net Income Available to Common Shareholders ($ in Millions) $360 $281 $358 $187 $39 $36 $75 $75 $90 $87 $115 $110 $123 $118 $144 $136 $154 $152 $163 $191 $36 $ YTD Net Income Available to Common Shareholders Operating Net Income Available to Common Shareholders 1 (1) Includes adjustments to reflect operating results, a non GAAP measure, refer to Appendix for non GAAP to GAAP Reconciliation details and the cautionary statement preamble for rationale for use of non GAAP measures. (2) Annualized YTD results. 25

26 Earnings Per Share $1.11 $0.65 $0.73 $0.83 $0.84 $0.85 $0.87 $0.90 $0.93 $0.48 $0.44 $0.32 $0.32 $0.65 $0.70 $0.79 $0.80 $0.80 $0.86 $0.78 $0.63 $ YTD Earnings Per Share Operating Earnings Per Share 1 Since 2008, FNB has returned nearly $1 billion to our shareholders 2 (1) Includes adjustments to reflect operating results, a non GAAP measure, refer to Appendix for non GAAP to GAAP Reconciliation details and the cautionary statement preamble for rationale for use of non GAAP measures. (2) Annualized YTD results. 26

27 Market Capitalization ($ in Millions) $4,497 $3,843 $3,390 $2,006 $2,318 $2,340 $1,184 $1,127 $775 $1,425 $1, /30/

28 Peer Comparison 28

29 Peer Leading Profitability Results Efficiency Ratio (%) Y 2014Y 2015Y 2016Y 2017Y 2018YTD Peer Group Median FNB FNB % Ranking (1) 74 th 74 th 75 th 70 th 79 th (1) Non GAAP measure, refer to Appendix for GAAP to Non GAAP Reconciliation details; Percentile ranking relative to peer median results for each period shown; Peer data per S&P Global Market Intelligence. 29

30 Return on Average Tangible Common Equity Trends (ROATCE) ROATCE Trends (%) Y 2014Y 2015Y 2016Y 2017Y YTD FNB Peer Group Median FNB % Ranking (1) 96 th 91 st 87 th 92 nd 100 th (1) Non GAAP measure, refer to Appendix for GAAP to Non GAAP Reconciliation details; Percentile ranking relative to peer median results for each period shown; Peer data per S&P Global Market Intelligence. 30

31 Return on Average Assets Trends (ROAA) ROAA Trends (%) Y 2014Y 2015Y 2016Y 2017Y 2018YTD FNB Peer Group Median FNB % Ranking (1) 61 st 66 th 55 th 54 th 54 th (1) Non GAAP measure, refer to Appendix for GAAP to Non GAAP Reconciliation details; Percentile ranking relative to peer median results for each period shown; Peer data per S&P Global Market Intelligence. 31

32 Supplemental Information 32

33 Annual Operating Trends Operating Earnings 1 (Non GAAP) Profitability Performance 1 (non GAAP) Balance Sheet Organic Growth Trends 2 Asset Quality Capital Net income available to common stockholders Net income per diluted common share Return on average assets Return on average tangible common equity Efficiency ratio Total loan growth Commercial loan growth Consumer loan growth 3 Transaction deposit and customer repo growth 4 NPL s + OREO/Total avg. originated loans and leases + OREO NCO s/total average originated loans leases Allowance for credit losses/total originated loans and leases Tangible Common Equity/Tangible Assets Tangible book value per share YTD $268.6 $ % $281.2 $ % $187.7 $ % $153.7 $ % $143.6 $ % 18.3% 55.0% 5.4% 4.4% 7.1% 15.7% 54.2% 6.3% 3.6% 10.4% 14.8% 55.4% 8.0% 7.4% 8.6% 14.7% 56.1% 9.7% 8.6% 11.4% 15.6% 57.2% 9.0% 9.1% 13.8% 2.1% 3.5% 8.0% 7.4% 6.3% 0.73% 0.81% 0.91% 0.99% 1.13% 0.33% 0.33% 0.34% 0.24% 0.24% 1.00% 6.89% $ % 6.74% $ % 6.64% $ % 6.71% $ % 6.83% $5.99 (1) Includes adjustments to reflect the impact of certain merger related items, refer to Appendix for GAAP to non GAAP Reconciliation details. (2) Full year average organic growth results. Organic growth results exclude initial balances acquired in the following acquisitions; YDKN 1Q17, FITB 2Q16, METR 1Q16, BofA 3Q15, OBAF 3Q14, BCSB 1Q14, PVFC 4Q13, ANNB 2Q13, PVSA 1Q12, CB&T 1Q11. (3) Consumer includes Residential, Direct Installment, Indirect Installment and Consumer LOC portfolios. (4) Total deposits excluding time deposits. 33

34 Diversified Loan Portfolio ($ in millions) Commercial Real Estate 09/30/2018 Balance $8,846 % of Portfolio 09/30/18 41% $21.8 Billion Loan Portfolio September 30, 2018 Commercial & Industrial 4,363 20% Commercial Leases 346 2% Other 35 <1% Total Commercial $13,590 62% Direct Installment 1,778 9% Residential Mortgage 2,985 14% Indirect Installment 1,881 9% Consumer LOC Total Consumer Total Loan Portfolio 1,605 $8,249 $21,839 7% 38% 100% Commercial Real Estate 41% Commercial & Industrial 20% Direct Installment 9% Residential Mortgage 14% Consumer LOC 7% Commercial Leases 2% Indirect 9% Note: Balance and % of Portfolio based on period end balances. 34

35 Loan Risk Profile YTD Net Charge Total Past ($ in millions) 9/30/2018 % of Loans NPL's/Loans 1 Offs/Loans 1 Due/Loans 1 Commercial and Industrial 4, % 0.84% 0.46% 0.86% CRE: Non Owner Occupied 5, % 0.26% 0.03% 0.41% CRE: Owner Occupied 3, % 0.73% 0.19% 0.77% Home Equity and Other Consumer 3, % 0.75% 0.17% 0.91% Residential Mortgage 2, % 0.44% 0.02% 0.87% Indirect Consumer 1, % 0.12% 0.39% 0.62% Former Regency Entity % 25.43% N/M 28.44% Equipment Finance Loans and Leases % 1.18% 0.09% 1.56% Other % 2.88% 1.87% 0.59% Total $21, % 0.59% 0.33% 0.79% Note: Balance and % of Portfolio based on period end balances. (1) Represents originated portfolio metric. 35

36 Deposits and Customer Repurchase Agreements ($ in millions) Savings, NOW, MMDA $12,033 51% Non Interest Bearing 6,019 25% Transaction Deposits $18,052 Time Deposits 5,448 23% Total Deposits $23,500 Customer Repos 265 1% Total Deposits and Customer Repo Agreements $23, % Transaction Deposits and Customer Repo Agreements $18,317 77% $23.8 Billion Deposits and 09/30/18 09/30/18 Customer Repo Agreements September 30, 2018 Balance Mix % Time Deposits 23% Non Interest Bearing 25% Savings, NOW, MMDA 51% Customer Loans to Deposits Ratio = 92.9% (09/30/18) Repos 1% o New client acquisition and relationship based focus reflected in favorable deposit mix 77% of total deposits and customer repo agreements are transaction based deposits Note: Balance and % of Portfolio based on period end balances. 36

37 Investment Portfolio % Ratings ($ in millions 1 ) Portfolio Investment % Agency MBS $2,704 46% AAA 100% Agency CMO 1,682 27% AAA 100% Agency Debentures % AAA 100% Highly Rated $6.3 Billion Investment Portfolio September 30, 2018 AAA, 85.8% Municipals 1,023 16% AAA 9% AA 77% A 14% AA, 12.0% Commercial MBS % AAA 100% US Treasury 1 <1% AAA 100% Other 2 <1% Various /NR A, 2.2% BBB,BB,B, <1% Total Investment Portfolio $6, % o 98% of total portfolio rated AA or better, 99% rated A or better o Relatively low duration of 4.6 o Municipal bond portfolio Highly rated with an average rating of AA and 99% of the portfolio rated A or better General obligation bonds = 100% of municipal portfolio Available for Sale, 51% Held to Maturity, 49% (1) Amounts reflect GAAP. (2) Comprised of Ginnie Mae Project Loans and FNMA DUS bond holdings. 37

38 2018 Peer Group Listing Ticker Institution Ticker Institution ASB Associated Banc Corp PBCT People s United Financial, Inc. CBSH Commerce Bancshares, Inc. PB Prosperity Bancshares, Inc. CMA Comerica, Inc. SNV Synovus Financial Corp. CFR Cullen/Frost Bankers, Inc. TCF TCF Financial Corp. EWBC East West Bancorp, Inc. UMPQ Umpqua Holdings Corp. FHN First Horizon National Corp. VLY Valley National Bancorp FRC First Republic Bank WBS Webster Financial Corp. HWC Hancock Whitney Corp. WTFC Wintrust Financial Corp. ISBC Investors Bancorp, Inc. ZION Zions Bancorp NYCB New York Community Bancorp 38

39 Non GAAP to GAAP Reconciliation For The Quarter Ended $ in thousands except per share amounts 30 Sep Jun Mar Dec Sep 17 Operating net income available to common stockholders Net income available to common stockholders $ 98,753 $ 83,196 $ 84,752 $ 22,115 $ 75,683 Gain on sale of subsidiary (5,135) Tax expense of gain on sale of subsidiary 1,078 Merger related expense 1,054 1,381 Tax benefit of merger related expense (365) (483) Branch Consolidation Costs 6,616 Tax benefit of branch consolidation costs (1,389) Discretionary 401(k) contributions 874 Tax benefit of discretionary 401(k) contributions (184) Reduction in valuation of deferred tax assets 54,042 Operating net income available to common stockholders (non GAAP) $ 94,696 $ 89,113 $ 84,752 $ 76,846 $ 76,581 Operating earnings per diluted common share Earnings per diluted common share $ 0.30 $ 0.26 $ 0.26 $ 0.07 $ 0.23 Gain on sale of subsidiary (0.02) Tax expense of gain on sale of subsidiary 0.01 Merger related expense Tax benefit of merger related expense (0.00) (0.00) Branch Consolidation Costs 0.02 Tax benefit of branch consolidation costs (0.01) Discretionary 401(k) contributions 0.00 Tax benefit of discretionary 401(k) contributions (0.00) Reduction in valuation of deferred tax assets 0.17 Operating earnings per diluted common share (non GAAP) $ 0.29 $ 0.27 $ 0.26 $ 0.24 $

40 Non GAAP to GAAP Reconciliation For The Quarter Ended $ in thousands except per share amounts 30 Sep Jun Mar Dec Sep 17 Operating net income available to common stockholders Net income available to common stockholders $ 98,753 $ 83,196 $ 84,752 $ 22,115 $ 75,683 Gain on sale of subsidiary (5,135) Tax expense of gain on sale of subsidiary 1,078 Merger related expense 1,054 1,381 Tax benefit of merger related expense (365) (483) Branch Consolidation Costs 6,616 Tax benefit of branch consolidation costs (1,389) Discretionary 401(k) contributions 874 Tax benefit of discretionary 401(k) contributions (184) Reduction in valuation of deferred tax assets 54,042 Operating net income available to common stockholders (non GAAP) $ 94,696 $ 89,113 $ 84,752 $ 76,846 $ 76,581 Operating earnings per diluted common share Earnings per diluted common share $ 0.30 $ 0.26 $ 0.26 $ 0.07 $ 0.23 Gain on sale of subsidiary (0.02) Tax expense of gain on sale of subsidiary 0.01 Merger related expense Tax benefit of merger related expense (0.00) (0.00) Branch Consolidation Costs 0.02 Tax benefit of branch consolidation costs (0.01) Discretionary 401(k) contributions 0.00 Tax benefit of discretionary 401(k) contributions (0.00) Reduction in valuation of deferred tax assets 0.17 Operating earnings per diluted common share (non GAAP) $ 0.29 $ 0.27 $ 0.26 $ 0.24 $

41 Non GAAP to GAAP Reconciliation For The Quarter Ended $ in thousands 30 Sep Jun Mar Dec Sep 17 Return on average tangible common equity (ROATCE) Net income available to common stockholders (annualized) $ 391,790 $ 333,699 $ 343,716 $ 87,740 $ 300,266 Amortization of intangibles, net of tax (annualized) 11,926 12,077 13,513 12,381 12,392 Tangible net income available to common stockholders (annualized) (non GAAP) $ 403,716 $ 345,776 $ 357,229 $ 100,121 $ 312,658 Average total stockholders' equity $ 4,516,008 $ 4,461,510 $ 4,430,269 $ 4,453,760 $ 4,426,980 Less: Average preferred stockholders' equity 106, , , , ,882 Less: Average intangible assets(1) 2,332,926 2,337,249 2,339,783 2,344,675 2,344,077 Average tangible common equity (non GAAP) $ 2,076,200 $ 2,017,379 $ 1,983,604 $ 2,002,203 $ 1,976,021 Return on average tangible common equity (non GAAP) 19.44% 17.14% 18.01% 5.00% 15.82% Operating ROATCE Operating net income avail. to common stockholders (annualized)(2) $ 375,696 $ 357,431 $ 343,716 $ 304,878 $ 303,825 Amortization of intangibles, net of tax (annualized) 11,926 12,077 13,513 12,381 12,392 Tangible operating net income avail. to common stockholders (annualized) (non GAAP) $ 387,622 $ 369,508 $ 357,229 $ 317,259 $ 316,217 Average total stockholders' equity $ 4,516,008 $ 4,461,510 $ 4,430,269 $ 4,453,760 $ 4,426,980 Less: Average preferred stockholders' equity 106, , , , ,882 Less: Average intangible assets(1) 2,332,926 2,337,249 2,339,783 2,344,675 2,344,077 Average tangible common equity (non GAAP) $ 2,076,200 $ 2,017,379 $ 1,983,604 $ 2,002,203 $ 1,976,021 Operating return on average tangible common equity (non GAAP) 18.67% 18.32% 18.01% 15.85% 16.00% (1) Excludes loan servicing rights. (2) A non GAAP measure, refer to page 40 in Appendix for more information. 41

42 Non GAAP to GAAP Reconciliation For The Quarter Ended $ in thousands 30 Sep Jun Mar Dec Sep 17 Return on average tangible assets (ROATA) Net income (annualized) $ 399,766 $ 341,762 $ 351,867 $ 95,719 $ 308,237 Amortization of intangibles, net of tax (annualized) 11,926 12,077 13,513 12,381 12,392 Tangible net income (annualized) (non GAAP) $ 411,692 $ 353,839 $ 365,380 $ 108,100 $ 320,629 Average total assets $ 32,402,803 $ 31,947,751 $ 31,494,506 $ 31,097,722 $ 30,910,664 Less: Average intangible assets(1) 2,332,926 2,337,249 2,339,783 2,344,675 2,344,077 Average tangible assets (non GAAP) $ 30,069,877 $ 29,610,502 $ 29,154,723 $ 28,753,047 $ 28,566,587 Return on average tangible assets (non GAAP) 1.37% 1.19% 1.25% 0.38% 1.12% Operating ROATA Operating net income (annualized)(2) $ 383,671 $ 365,493 $ 351,867 $ 312,857 $ 311,800 Amortization of intangibles, net of tax (annualized) 11,926 12,077 13,513 12,381 12,392 Tangible operating net income (annualized) (non GAAP) $ 395,597 $ 377,570 $ 365,381 $ 325,238 $ 324,192 Average total assets $ 32,402,803 $ 31,947,751 $ 31,494,506 $ 31,097,722 $ 30,910,664 Less: Average intangible assets(1) 2,332,926 2,337,249 2,339,783 2,344,675 2,344,077 Average tangible assets (non GAAP) $ 30,069,877 $ 29,610,502 $ 29,154,723 $ 28,753,047 $ 28,566,587 Operating return on average tangible assets (non GAAP) 1.32% 1.28% 1.25% 1.13% 1.13% (1) Excludes loan servicing rights. (2) A non GAAP measure, refer to page 43 in Appendix for more information. 42

43 Non GAAP to GAAP Reconciliation For The Quarter Ended $ in thousands 30 Sep Jun Mar Dec Sep 17 Operating net income Net income $ 100,763 $ 85,206 $ 86,762 $ 24,126 $ 77,693 Gain on sale of subsidiary (5,135) Tax expense of gain on sale of subsidiary 1,078 Merger related expense 1,054 1,381 Tax benefit of merger related expense (365) (483) Branch consolidation costs 6,616 Tax benefit of branch consolidation costs (1,389) Discretionary 401(k) contributions 874 Tax benefit of discretionary 401(k) contributions (184) Reduction in valuation of deferred tax assets 54,042 Operating net income (non GAAP) $ 96,706 $ 91,123 $ 86,762 $ 78,857 $ 78,591 Operating return on average assets (ROAA) Operating net income (annualized)(1) $ 383,671 $ 365,493 $ 351,868 $ 312,857 $ 311,800 Average total assets $ 32,402,803 $ 31,947,751 $ 31,494,506 $ 31,097,722 $ 30,910,664 Operating return on average assets (non GAAP) 1.18% 1.14% 1.12% 1.01% 1.01% (1) A non GAAP measure, refer to reconciliation above for more information. 43

44 Non GAAP to GAAP Reconciliation For The Quarter Ended $ in thousands except per share amounts 30 Sep Jun Mar Dec Sep 17 Tangible book value per common share (at period end) Total stockholders' equity $ 4,524,864 $ 4,473,242 $ 4,433,453 $ 4,409,194 $ 4,435,921 Less: preferred stockholders' equity 106, , , , ,882 Less: intangibles(1) 2,329,830 2,335,445 2,339,139 2,341,263 2,351,707 Tangible common equity (non GAAP) $ 2,088,152 $ 2,030,915 $ 1,987,432 $ 1,961,049 $ 1,977,332 Ending common shares outstanding 324,275, ,258, ,686, ,465, ,301,548 Tangible book value per common share (non GAAP) $ 6.44 $ 6.26 $ 6.14 $ 6.06 $ 6.12 Tangible common equity / Tangible assets (at period end) Total stockholders equity $ 4,524,864 $ 4,473,242 $ 4,433,453 $ 4,409,194 $ 4,435,921 Less: preferred stockholders' equity 106, , , , ,882 Less: intangibles(1) 2,329,830 2,335,445 2,339,139 2,341,263 2,351,707 Tangible common equity (non GAAP) $ 2,088,152 $ 2,030,915 $ 1,987,432 $ 1,961,049 $ 1,977,332 Total assets $ 32,617,595 $ 32,257,563 $ 31,652,353 $ 31,417,635 $ 31,123,295 Less: intangibles(1) 2,329,830 2,335,445 2,339,139 2,341,263 2,351,707 Tangible assets (non GAAP) $ 30,287,765 $ 29,922,118 $ 29,313,214 $ 29,076,372 $ 28,771,588 Tangible common equity / Tangible assets (period end) (non GAAP) 6.89% 6.79% 6.78% 6.74% 6.87% (1) Excludes loan servicing rights. 44

45 Non GAAP to GAAP Reconciliation For The Quarter Ended $ in thousands 30 Sep Jun Mar Dec Sep 17 Efficiency Ratio (FTE) Non interest expense $ 170,729 $ 183,013 $ 171,083 $ 166,529 $ 163,743 Less: amortization of intangibles 3,805 3,811 4,218 4,801 4,805 Less: OREO expense 1,492 2,233 1,367 1,026 1,421 Less: merger costs 1,054 1,381 Less: branch consolidation expenses 2,939 Less: discretionary 401(k) contributions 874 Adjusted non interest expense $ 165,432 $ 173,156 $ 165,498 $ 159,648 $ 156,136 Net interest income $ 234,787 $ 239,355 $ 226,105 $ 230,036 $ 225,231 Taxable equivalent adjustment 3,400 3,319 3,103 5,597 5,173 Non interest income 74,834 64,889 67,503 65,104 66,151 Less: net securities gains ,777 Less: Gain on sale of subsidiary 5,135 Add: loss on fixed assets related to branch consolidation 3,677 Adjusted net interest income (FTE) (non GAAP) + non interest income $ 307,886 $ 311,209 $ 296,711 $ 300,716 $ 293,778 Efficiency Ratio (FTE) (non GAAP) 53.73% 55.64% 55.78% 53.09% 53.15% 45

46 Non GAAP to GAAP Reconciliation For The Quarter Ended $ in thousands 30 Sep Jun Mar Dec Sep 17 Components of net interest income Net interest income $ 234,787 $ 239,355 $ 226,105 $ 230,036 $ 225,231 Net interest margin (FTE)(1) 3.36% 3.51% 3.39% 3.49% 3.44% Incremental purchase accounting accretion included in net interest income $ 5,852 $ 5,790 $ 4,841 $ 4,695 $ 2,154 Incremental purchase accounting accretion impact to net interest margin 0.08% 0.08% 0.07% 0.07% 0.04% Cash recoveries included in net interest income $ 1,479 $ 10,198 $ 1,085 $ 5,313 $ 4,340 Cash recoveries impact to net interest margin 0.02% 0.15% 0.02% 0.08% 0.06% Incremental purchase accounting accretion refers to the difference between total accretion and the estimated coupon interest income on acquired loans, and cash recoveries impact refers to any associated cash recoveries on loans received in excess of the recorded investment. (1) Reported on a Fully Taxable Equivalent (FTE) basis, a non GAAP measure. 46

47 Non GAAP to GAAP Reconciliation For The Fiscal Year $ in thousands except per share amounts YTD Operating net income available to common stockholders Net Income available to common stockholders $ 266,701 $ 191,163 $ 162,850 $ 151,608 $ 135,698 $ 117,804 Merger related expense, net of tax 37,667 24,889 2,084 7,897 5,337 Merger related net securities gians, net of tax (1,696) Branch consolidation costs, net of tax 5,227 Discretionary 401(k) contributions, net of tax 690 Reduction in valuation of deferred tax assets 54,042 Gain on sale of subsidiary (4,057) Operating net income available to common stockholders (non GAAP) $ 268,561 $ 281,176 $ 187,739 $ 153,692 $ 143,595 $ 123,141 Operating net income per diluted common share Net income per diluted common share $ 0.82 $ 0.63 $ 0.78 $ 0.86 $ 0.80 $ 0.80 Merger related expenses, net of tax Merger related net securities gains, net of tax (0.01) Branch consolidation costs, net of tax 0.01 Discretionary 401(k) contributions, net of tax 0.00 Reduction in valuation of deferred tax assets 0.17 Gain on sale of subsidiary ($0.01) Operating net income per diluted common share (non GAAP) $ 0.82 $ 0.93 $ 0.90 $ 0.87 $ 0.85 $

48 Non GAAP to GAAP Reconciliation $ in thousands except per share amounts Operating net income available to common stockholders Net Income available to common stockholders $ 110,410 $ 87,047 $ 74,652 $ 32,803 $ 35,615 Merger related expense, net of tax 5,203 3, ,071 Merger related net securities gians, net of tax Reduction in valuation of deferred tax assets Operating net income available to common stockholders (non GAAP) $ 115,613 $ 90,285 $ 75,054 $ 32,803 $ 38,686 Operating net income per diluted common share Net income per diluted common share $ 0.79 $ 0.70 $ 0.65 $ 0.32 $ 0.44 Merger related expenses, net of tax Merger related net securities gains, net of tax Reduction in valuation of deferred tax assets Operating net income per diluted common share (non GAAP) $ 0.83 $ 0.73 $ 0.65 $ 0.32 $

49 Non GAAP to GAAP Reconciliation For The Fiscal Year $ in thousands except per share amounts YTD Return on average tangible common equity (ROATCE) Net income available to common stockholders $ 356,579 $ 191,163 $ 162,850 $ 151,608 $ 135,698 $ 117,804 Amortization of intangibles, net of tax 12,499 11,386 8,943 6,861 6,316 5,465 Tangible net income available to common stockholders (non GAAP) $ 369,078 $ 202,549 $ 171,793 $ 158,469 $ 142,014 $ 123,269 Average total stockholders' equity $ 4,469,577 $ 4,073,700 $ 2,499,976 $ 2,072,170 $ 1,920,440 $ 1,478,682 Less: Average preferred stockholder's equity 106, , , , ,882 17,862 Less: Average intangible assets(1) 2,336,627 2,108,102 1,059, , , ,894 Avereage tangible stockholder's equity (non GAAP) $ 2,026,068 $ 1,858,716 $ 1,333,238 $ 1,095,941 $ 963,624 $ 707,926 Return on average tangible common equity (non GAAP) 18.22% 10.90% 12.89% 14.46% 14.74% 17.41% Operating ROATCE Operating net income available to common stockholders(2) $ 268,561 $ 281,176 $ 187,739 $ 153,692 $ 143,595 $ 123,141 Amortization of intangibles, net of tax 12,499 11,386 8,943 6,861 6,316 5,465 Operating tangible net income available to common stockholders (non GAAP) $ 281,060 $ 292,562 $ 196,682 $ 160,553 $ 149,911 $ 128,606 Average total stockholders' equity $ 4,469,577 $ 4,073,700 $ 2,499,976 $ 2,072,170 $ 1,920,440 $ 1,478,682 Less: Average preferred stockholders' equity 106, , , , ,882 17,862 Less: Average intangible assets(1) 2,336,627 2,108,102 1,059, , , ,894 Average tangible common equity (non GAAP) $ 2,026,068 $ 1,858,716 $ 1,333,238 $ 1,095,941 $ 963,624 $ 707,926 Operating return on average tangible common equity (non GAAP) 13.87% 15.74% 14.75% 14.65% 15.56% 18.17% (1) Excludes loan servicing rights. (2) A non GAAP measure, refer to page 47 in Appendix for more information. (3) YTD net income and amortization figures are annualized. 49

50 Non GAAP to GAAP Reconciliation $ in thousands Operating net income Net income Merger related expense, net of tax Tax expense of merger related securities gains Branch consolidation costs, net of tax Discretionary 401 (k) contribution, net of tax Reduction in valuation of deferred tax assets Gain on sale of subsidiary, net of tax Operating net income (non GAAP) For The Fiscal Year YTD $ 272,731 $ 199,204 $ 170,891 $ 159,649 $ 144,050 $ 117,804 37,667 24,889 2,084 7,897 5,337 (1,696) 5, ,042 (4,057) $ 274,591 $ 289,217 $ 195,780 $ 161,733 $ 151,947 $ 123,141 Average total assets $ 31,951,681 $ 29,131,109 $ 20,677,717 $ 16,606,147 $ 14,962,140 $ 12,640,685 Operating return on average assets Operating net income(1)(2) $ 368,477 $ 289,217 $ 195,780 $ 161,733 $ 151,947 $ 123,141 Average total assets $ 31,951,681 $ 29,131,109 $ 20,677,717 $ 16,606,147 $ 14,962,140 $ 12,640,685 Operating return on average assets (non GAAP) 1.15% 0.99% 0.95% 0.97% 1.02% 0.97% (1) A non GAAP measure, refer to reconciliation above for more information. (2) YTD operating net income is annualized. 50

51 Non GAAP to GAAP Reconciliation For The Fiscal Year $ in thousands except per share amounts YTD Tangible book value per common share (at period end) Total stockholders' equity $ 4,524,864 $ 4,409,194 $ 2,571,617 $ 2,096,182 $ 2,021,456 $ 1,774,383 Less: preferred stockholders' equity 106, , , , , ,882 Less: intangibles (1) 2,329,830 2,341,263 1,085, , , ,856 Tangible common equity (non GAAP) $ 2,088,152 $ 1,961,049 $ 1,378,800 $ 1,119,491 $ 1,041,715 $ 855,645 Ending common shares outstanding 324,275, ,465, ,059, ,441, ,992, ,967,211 Tangible book value per common share (non GAAP) $ 6.44 $ 6.06 $ 6.53 $ 6.38 $ 5.99 $ 5.38 Tangible common equity / Tangible assets (at period end) Total stockholders equity $ 4,524,864 $ 4,409,194 $ 2,571,617 $ 2,096,182 $ 2,021,456 $ 1,774,383 Less: preferred stockholders' equity 106, , , , , ,882 Less: intangibles(1) 2,329,830 2,341,263 1,085, , , ,856 Tangible common equity (non GAAP) $ 2,088,152 $ 1,961,049 $ 1,378,800 $ 1,119,491 $ 1,041,715 $ 855,645 Total assets Less: intangibles(1) Tangible assets (non GAAP) $ 32,617,595 2,329,830 $ 30,287,765 $ 31,417,635 2,341,263 $ 29,076,372 $ 21,844,817 1,085,935 $ 20,758,882 $ 17,557, ,809 $ 16,687,413 $ 16,127, ,859 $ 15,254,231 $ 13,563, ,856 $ 12,751,549 Tangible common equity / Tangible assets (period end) (non GAAP) 6.89% 6.74% 6.64% 6.71% 6.83% 6.71% (1) Excludes loan servicing rights. 51

52 Non GAAP to GAAP Reconciliation For The Fiscal Year $ in thousands except per share amounts YTD Efficiency Ratio Non interest expense $ 524,825 $ 681,542 $ 511,133 $ 390,549 $ 379,253 $ 338,170 Less: amortization of intangibles 11,834 17,517 11,210 8,305 9,717 8,407 Less: OREO expense 5,092 4,438 5,154 4,637 4,400 3,215 Less: merger related expenses 56,513 37,439 3,033 12,150 8,210 Less: impairment charge on other assets 2,585 Less: branch consolidation expenses 2,939 Less: discretionary 401(k) contributions 874 2,172 Adjusted non interest expense $ 504,086 $ 603,074 $ 454,745 $ 374,574 $ 352,986 $ 316,166 Net interest income $ 700,247 $ 846,434 $ 611,512 $ 498,222 $ 466,297 $ 396,042 Taxable equivalent adjustment 9,823 18,766 11,248 7,636 6,899 6,969 Non interest income 207, , , , , ,778 Less: net securities gains 31 5, , Less: gain on redemption of trust preferred securities 2,422 Less: other non recurring items 2,713 1,532 Less: loss on fixed assets related to branch consolidation Less: gain on sale of subsidiary 5,135 Add: branch consolidation costs 3,677 Adjusted net interest income (FTE) + non interest income $ 915,807 $ 1,111,733 $ 821,387 $ 667,447 $ 617,040 $ 536,449 Efficiency Ratio (non GAAP) 55.04% 54.25% 55.36% 56.12% 57.21% 58.94% 52